4 August 2025,03:31
Daily Market Analysis
4 August 2025, 03:31
Key Takeaways:
*Crypto markets declined after the U.S. added only 73,000 jobs, far below expectations, dragging total market cap down 4% since Friday.
*Over $200 million in Bitcoin long positions were liquidated within 24 hours post-August 1, amplifying bearish momentum across digital assets.
*Fresh U.S. tariffs—up to 41% on certain imports—intensified risk-off sentiment, pressuring both equities and cryptocurrencies.
Market Summary:
The digital asset market extended its decline following a disappointing U.S. jobs report that fell significantly short of expectations, with just 73,000 new positions created compared to the anticipated 104,000. This weaker-than-expected employment data, coupled with heightened trade tensions, sparked a broad risk-off sentiment across financial markets—weighing particularly heavily on cryptocurrencies. The total crypto market capitalization dropped 4% since Friday, reflecting growing investor caution in the current macroeconomic environment.
Leveraged Positions Unwind as Volatility Spikes
The selloff gained momentum as overleveraged long positions were forcibly liquidated, with Bitcoin alone seeing more than $200 million in long contracts wiped out within a single day. The cascading effect mirrored broader market weakness, as U.S. equities also closed sharply lower—the Dow Jones Industrial Average plummeted over 500 points, while the tech-heavy Nasdaq Composite slid 2.2%, underscoring the pervasive risk aversion.
Trade Policy Adds to Downward Pressure
Market sentiment deteriorated further after President Trump unveiled a new round of tariffs, including a 35% duty on Canadian imports and rates as high as 41% on select goods from other trading partners, set to take effect August 7. While cryptocurrencies showed brief signs of stabilization, the overall bearish trend remains firmly intact, with traders awaiting a meaningful catalyst to reverse the downward momentum.
Given the current environment of macroeconomic uncertainty and escalating trade tensions, digital assets may remain vulnerable to further downside in the near term. Market participants are advised to exercise caution, as the convergence of weak labor data, equity market volatility, and protectionist trade measures could continue to suppress risk appetite until clearer signs of stability emerge.
Technical Analysis
Bitcoin (BTC) remains under broad selling pressure despite a modest rebound of over 2% from its monthly low of $111,900. The cryptocurrency had previously broken above its downtrend channel in what proved to be a false breakout, followed by a sharp 5% decline from the local peak.
Currently, BTC continues to trade below the 38.2% Fibonacci retracement level at $115,380—an indication that the broader downtrend remains intact. Technical indicators reinforce the bearish outlook: the Relative Strength Index (RSI) has dipped into oversold territory, while the MACD remains below the zero line, signaling continued downside momentum. Unless Bitcoin reclaims key resistance levels, sentiment is likely to stay defensive in the near term.
Resistance Levels:115,380.00, 117,395.00
Support Levels: 113,310.00, 111,020.00
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